December 2022
06Dec

How Access To Retirement Plans (or Lack Thereof) Is Preventing Americans From Having Adequate Savings

Access to a workplace retirement plan typically prompts more people to save, but many Americans don’t even get the chance. This problem has to do with the current retirement system, as more employers opt for 401(k) plans and other similar retirement accounts over pensions, putting the responsibility of saving on the workers instead. “There are too many Americans who don’t have that future stability,” U.S. Secretary of Labor Marty Walsh said at an event hosted by the Employee Benefit Research...

December 6, 2022
News, ,
Read more...
02Dec

Are Retirement Planning Tools Substitutes or Complements to Financial Capability?

By Gopi Goda, Matthew Levy, Colleen Flaherty Manchester, Aaron Sojourner, Joshua Tasoff & Jiusi Xiao We conduct a randomized controlled trial to understand how a web-based retirement saving calculator affects workers' retirement-savings decisions. In both conditions, the calculator projects workers' retirement income goal. In the treatment condition, it also projects retirement income based on defined-contribution savings, prominently displays the gap between projected goal and actual retirement income, and allows users to interactively explore how alternative, future contribution choices would affect...

December 2, 2022
Articles, Labor Market, Pension design, , ,
Read more...
01Dec

These are the best countries to retire in

Our global population is getting older. By 2050, the OECD predicts that 30% of people worldwide will be aged 65 or over. While some countries are relatively prepared to handle this increase in the elderly demographic, others are already feeling the squeeze and struggling with the challenges that come with a rapidly aging population. Which countries are the best equipped to support their senior citizens? This graphic uses data from the 2022 Natixis Global Retirement Index to show the best countries...

December 1, 2022
News, ,
Read more...

November 2022
25Nov

Average Retirement Savings: How Do You Compare?

By Amelia Josephson If you’re wondering what’s a normal amount of retirement savings, you’re probably one of the 60% of Americans who either don’t think their savings are on track or aren’t sure, according to the Federal Reserve’s “Report on the Economic Well-Being of U.S. Households in 2019.” Among all adults, median retirement savings are $65,000, according to the Federal Reserve’s most recent data. The Federal Reserve also estimated that by retirement, that number would grow to an average...

November 25, 2022
Articles, Savings, , ,
Read more...
22Nov

US. How many retire with one million dollars?

Saving $1 million (or more) for retirement is a great goal to have. Putting that much aside could make it easier to live your preferred lifestyle when you retire, without having to worry about running short of money. However, not a huge percentage of retirees end up having that much money. In fact, statistically, around 10% of retirees have $1 million or more in savings. The majority of retirees, however, have far less saved. If you’re looking to be...

November 22, 2022
News, ,
Read more...

October 2022
14Oct

Bounded Rationality and Optimal Retirement Age

By Hyeon Park This paper explores a lifecycle model of labor supply and endogenous retirement behavior for households whose planning window is truncated and who will reoptimize as extra information on productivity is revealed over time. This short horizon model internalizes the restriction on rationality for temporal resource allocation and the labor supply is closely dependent on the degree of productivity changes in view. With the model, the endogenous retirement timing---the moment at which the marginal utility from the intended...

October 14, 2022
Articles, Labor Market, , ,
Read more...
06Oct

US. Retirement Planning: There’s A Wide Gap Between Expectations And Reality

There’s a significant perception/reality gap among most pre-retirees and retirees today. That’s one of the key takeaways from a new study published by the Stanford Center on Longevity (SCL), titled Disconnected: Reality vs. Perception in Retirement Planning. The study shows that most of today’s pre-retirees and retirees lack sufficient savings to fully retire at age 65 and that generally, they’re not financially prepared for retirement. Yet they hold unrealistic financial expectations for their retirement years, and they’re not taking steps...

October 6, 2022
News, ,
Read more...
05Oct

US. 5 Ways Inflation is Changing Retirement Planning

GOBankingRates survey finds 3 in 4 Americans say inflation is impacting how they save and plan for retirement. Here’s what they’re doing A recent GOBankingRates survey of nearly 1,000 Americans found that nearly three-quarters (73.5%) say inflation is affecting their retirement plans in some way, from how they invest to when they plan to retire. Per the survey, here are five significant ways inflation is changing how people are saving and planning for retirement. Saving more The most common response to inflation when...

October 5, 2022
News, ,
Read more...

September 2022
30Sep

Nudges and Networks: How to Use Behavioural Economics to Improve the Life Cycle Savings-Consumption Balance

By David Blake Many people find it difficult to start and maintain a retirement savings plan. We show how nudges can be used both to encourage people to save enough to provide an acceptable standard of living in retirement and to draw down their accumulated pension fund to maximize retirement spending, without the risk of either running out of money or leaving unintended bequests. Networks can help too, particularly employer-based networks. However, the nudges and networks are more likely to...

September 30, 2022
Articles, Savings, ,
Read more...
28Sep

How To Retire During A Bear Market

Imagine retiring in this market. A 60-year-old who owns a balanced fund—60% allocated to stocks, 40% to bonds—has seen the value of their investment drop by 18% so far this year. Soaring prices only makes matters worse. Not only does our 60-year-old have less wealth, but also their savings don’t buy what they used to. In fact, financial advisors say their clients have been more preoccupied with gas and food prices than the terrible stock market. “Inflation is the biggest issue...

September 28, 2022
News,
Read more...